Alpari UK Clients Will Be Required to Cover Negative Balances, KPMG Confirms
The insolvent broker's administrator has issued a F.A.Q document, stating that traders with negative balance "will be asked to pay
Following its filing of insolvency, Alpari UK’s business was transferred to KPMG under the Special Administration Regime (SAR). KPMG was to supervise the case, handle returning of customer funds and act as a central point in any third-party acquisition discussion. Adding to its initial letter to clients, KPMG published a list of Frequently Asked Questions (FAQ) and comments about Swiss franc execution.
Within the FAQ, KPMG addresses the question of negative balances. According to the special administrator, clients with negative balances will we asked to cover their debts with the broker, with payment details forthcoming.
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In addition, KPMG published that in its review of trade executions among clients, they have found what they call “certain inconsistencies in the pricing of trades” after the SNB announcement on Thursday January 15th.
They added that “any account statements or information provided by other means received by Clients and Creditors after the SNB announcement may not accurately represent a Client’s or Creditor’s balance.” This seems to indicate that customers may be vulnerable to repricing of their trade executions to closer resemble market prices when the Swiss franc began to move.
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Whether any trade adjustments will negatively affect customers is yet to be determined. It has already been claimed by numerous retail brokers that execution quality from banks following the SNB’s announcement was poor and resulted in trades filled at prices well below that of EBS. As such, if this was the case with Alpari UK customers, the KPMG Special Administrator may be able to source better executions for traders affected by the franc’s strength. Results of their execution analysis will be made public after the trade review process is finalized.
In regards to customers who only had cash balances with the broker before the SNB’s announcement, KPMG expects their accounts to be reviewed more quickly, which may allow them to receive withdrawal disbursements sooner than clients who had been trading.
*UPDATE
On the heels of the earlier Q&A, KPMG has released a statement confirming that Alpari UK’s clientele will be responsible for bearing any negative balances. The verdict represents a bitter finality for clients, especially given the uncertain future facing Alpari UK.
So my measly little 50 euro long trade at 1.20075 with a SL at 1.19750 for fun is now -4000 euros at Alpari UK. Good luck getting that out of my bank!
i only agree on this if alpari pays clients who were ahort. A 10 lot short on eurchf would have resulted in 450 000 eur profit. Kpmg say they will only pay what is available in the pool of funds.
alpari uk, amateur hour clowns…………
If I would be an EX Alpari UK customer, I would sue KPMG personally for the BEING MOST IDIOTIC COMPANY ON EARTH. So, KPMG is looking for buyers of Aplari´s business and the first thing they come up with, is going after clients negative balances? Ha, ha, ha, ha.
Dear Alpari customers, please close your accounts! Accordingly, KPMG can sell SHIT to any potential buyer . you know potential buyers like OANDA and other wannabe “WHITE KNGHTS”!!!!!
@Forexmagnates: What about QuantumFX? The firm includes entities of Alpari (UK). Is QuantumFX also insolvent? The webpage of Qunatum seems to work…
@Jon – According to the KPMG statements, it includes at least these brands Alpari FX, AlpariFX, AUK, Quantum FX and QuantumFX
https://www.insolvency-kpmg.co.uk/Viewer/pdfViewer.aspx?sid=qx1lyeswhlx0egy3btq4jcin&did=1108098c-a722-41b8-8e5e-2199b2b932db
I read the FAQ but didn’t find anything about negative balances. Can you guys tell me where is that written? thanks
I used Alpari UK for many years for their free talking FX feed; as fortune would have it I had a short on the EUR prior to the move.
I am a Bowse.
I knew some thing was wrong, so I withdrew monies. Fri 16 even got an email …. ‘Your withdrawal request has been received by our Back Office team and is being processed’ …. then Monday they went Bang. Still not got my withdrawal. lol
@Ron Finberg
Sorry for the delay, anyway that shoudn’t apply for negative balances since I read on alpari FAQ when I opened my account that you can’t lose more than on your account, so technically that is not the case. I mean FAQ should mean something and they can’t just change the agrements as they wish.
Uncertain future facing Alpari UK… Yes! What a shame to lose such a good broker. CHF crisis has not spared the best
Dear Fellow Traders
I also have a negative balance and got the letter from cci legal.
I’m willing to fight this in court and already found a good lawyer.
Who wants to join me? It’s much easier if we are more people.
Please send me a PM!
Looking forward to hearing from you!
@Alparivictim:
Can you contact me ? I also have negative balance. We can discuss this further. I did not find a way to send you a pm.
Hallo alparivictim,
can you please send e-mail to adress financevkostce@seznam.cz ?
Thank you.
Jiri
Please can you contact me by email ,I would like to join you in the case against alpari:email: svens.fx@outlook.com
Dear victim,
Same here. I used to be a client of Alpari.Dear, I agree, alpari was negligent as they was unable to protect client money and could not hedge with franc.
Let’s get together all clients who are affected by alpari and claim for negligence and they are supposed to return our all money as I was dealing with gold and they closed my all negative positions.
I didn’t agree my balance with alpari and want to know what is the status or your case if you can send me a copy.
ALPARIVICTIM
Can you contact me ? I also have negative balance. We can discuss this further.
I am from Czech republic.
Thank you
Jiri